- Global equities fell as a result of the US government debt being downgraded by Fitch Ratings, which caused investors to flee riskier investments and raised concerns about the phenomenal rise in tech stock prices this year.
- Nasdaq 100 futures decreased by 0.8%, indicating a dip for the market later on Wednesday after it increased by 44% in 2023. All industry groups in the regional benchmark index went into the red due to widespread losses across Europe.
- After criticising the soaring fiscal deficit and a "erosion of governance," Fitch downgraded the US's top-tier rating. For equity investors already anxious about the prospects of a recession and the sustainability of this year's stock market rally, the downgrade adds another layer of risk. Treasuries were steady, in keeping with Treasury Secretary Janet Yellen’s assertion that they remain “the world’s preeminent safe and liquid asset.”
- BoJ's Uchida: If economic and price conditions remain roughly unchanged, don't expect interest rates to rise sharply.
